FCCA FCCA Financial Reporting and Standards 3

Question 1

Which IFRS standard deals with the presentation of financial statements and prescribes minimum content requirements?

Accepted Answer

IAS 1

Answer

IAS 7

Answer

IAS 16

Answer

IAS 38

Question 2

Under IAS 16, which model allows property, plant, and equipment to be carried at fair value less accumulated depreciation after initial recognition?

Accepted Answer

Revaluation model

Answer

Cost model

Answer

Fair value through profit or loss model

Answer

Amortized cost model

Question 3

An FCCA preparing consolidated financial statements must eliminate which of the following inter-company transactions?

Accepted Answer

Intra-group sales of inventory between subsidiaries

Answer

Sales to external third-party customers

Answer

Dividends received from unconsolidated associates

Answer

Interest paid to external lenders

Question 4

Under US GAAP ASC 842, how must lessees classify leases?

Accepted Answer

As either finance leases or operating leases

Answer

All leases as operating leases only

Answer

As either capital leases or operating leases (pre-842 terminology)

Answer

All leases as finance leases only

Question 5

Which statement best describes the going concern assumption in financial reporting?

Accepted Answer

The entity will continue to operate indefinitely unless there is evidence to the contrary

Answer

The entity will continue to operate at least 12 months from the balance sheet date

Answer

The entity has sufficient cash to meet all liabilities immediately

Answer

The entity's assets exceed its liabilities at the reporting date

Question 6

Under IFRS, research and development costs are accounted for under which standard?

Accepted Answer

IAS 38 — Intangible Assets

Answer

IAS 16 — Property, Plant and Equipment

Answer

IFRS 3 — Business Combinations

Answer

IAS 36 — Impairment of Assets